Monitise, a UK-based banking and payments service provider, has entered into a strategic alliance agreement with Visa International Service Association, a subsidiary of Visa. The five year agreement has a contract value of $13 million and Visa International will own 14.4% of the issued share capital of Monitise. Visa’s appointee will take a seat on Monitise’s advisory board and will have the option to nominate a representative to the main board.
It has reported that Monitise will be a strategic development partner for Visa’s comprehensive suite of mobile services, including payments, mobile money transfer, mobile transaction alerts and mobile marketing offers to support Visa’s mobile strategy.
Monitise also revealed that it has also entered into agreements with other existing shareholders, namely UBS Global Asset Management and Capital Group, to subscribe for an aggregate of 73.2 million new ordinary shares at a price of 7p, representing a premium of 33%. Following these agreements, UBS Global Asset Management will own 12.9% and Capital Group will own 5.8%.
Tim Attinger, Head of Global Product Innovation, Visa, said: “In aligning with Monitise, we expect to expand the delivery of Visa mobile services to consumers around the globe, enabling them to seamlessly use their mobile phones to purchase goods and services, make payments, receive valuable information and offers, and transfer money between accounts, in a safe and secure manner.”
Alastair Lukies, Chief Executive Officer, Monitise, said: “This alliance validates our unwavering commitment to building truly accessible, inclusive and reliable services over the past seven years. It is a landmark announcement in the mobile payment space and we are excited to collaborate with the world’s foremost payments company to accelerate the convergence of payments services and mobile devices.
We are also proud to welcome Tim Attinger to our Advisory Board; his deep payments and mobile expertise will make him a valued member to our key contributing body,” he added.
